BLK BlackRock Inc

Bitcoin recovers slightly; hash rate drop indicates possible miner capitulation

After a negative day for the crypto sector, Bitcoin (COIN:BTCUSD) recovered by 0.60% on Friday morning, priced at $67,122.71 in the last 24 hours.

Regarding the recent dynamics in the Bitcoin mining market, the hash rate has dropped to around 600 exahashes per second, suggesting a possible capitulation period for some miners after 18 months of steady growth. This decline in mining activity, which reflects a lower difficulty in mining Bitcoin, may indicate that mining companies are beginning to sell their BTC reserves, although capitulation is not entirely confirmed by the selling movements.

The “Miner Net Position Change” indicator, which tracks the net balance of Bitcoin miners, provides insights into their market expectations. When the balance is positive, it usually indicates that miners are holding Bitcoin, likely because they expect the price to increase. Conversely, a negative balance suggests they are selling, perhaps to cover operational costs or because they foresee a price drop.

Fernando Pereira, an analyst at Bitget, reinforces the observation that although there are signs of selling, the situation is not alarming but requires vigilance to understand if this trend will persist and potentially signal more significant market changes. “The indicator shows a distribution from miners that is not one of the largest recently, but it deserves attention if it prolongs or increases in volume. However, this is not an effective reversal signal, especially when compared to the last cycle, where miners were buying at the all-time high and selling at the all-time low,” said Pereira.

In other related news, a new report from Greenpeace USA criticizes large financial institutions on Wall Street for financing the Bitcoin mining industry, which generates high carbon emissions. Greenpeace calls for more transparency and responsibility regarding the climate impacts of these investments. The report highlights names like BlackRock (NYSE:BLK) and Vanguard as major financiers of this activity, pointing them out as responsible for enormous amounts of CO2.

Bernstein predicts Bitcoin to reach $1 million by 2033

Bernstein has started covering MicroStrategy (NASDAQ:MSTR), highlighting its optimistic projections for Bitcoin (COIN:BTCUSD), noting that it could reach $1 million by 2033 and $200,000 by 2025. MicroStrategy, the largest corporate holder of Bitcoin, owns 1.1% of the global supply of the cryptocurrency. The company, transformed in four years, is seen as an active model of Bitcoin accumulation compared to passive ETFs.

Sharp drop in Bitcoin ETFs after day of gains

On June 13, US spot Bitcoin ETFs experienced a sharp reduction in their positions after a day of significant gains. Recent data indicates withdrawals worth $226.2 million, a stark contrast to the $100.8 million inflows the previous day. Fidelity’s ETF (AMEX:FBTC) led the outflows with $106.4 million. Only BlackRock’s ETF (NASDAQ:IBIT) showed new inflows, standing out in the prevailing trend of outflows.

Analyst explains slowdown in Bitcoin adoption

Jurrien Timmer of Fidelity Investments analyzed the recent slowdown in Bitcoin adoption, despite considering it “exponential gold.” He notes that the growth of the Bitcoin network has not kept pace with its price gains, creating a significant divergence. Timmer attributes this dynamic to growth influenced by the coin’s scarcity, monetary and fiscal policies, and market sentiment. This divergence may be the key to understanding why Bitcoin has not reached new all-time highs recently.

Bitfarms expands operations in Pennsylvania as Riot intensifies acquisition attempt

Bitfarms (NASDAQ:BITF), a leading Bitcoin mining company, announced the expansion of its operations to Sharon, Pennsylvania. The new site will allow the development of up to 120 megawatts of energy capacity. This expansion, located at the PJM interconnection, will provide Bitfarms with access to competitive electricity rates, strengthening its market position and increasing its geographical diversification as the company aims for an operational capacity of 8 EH/s by 2025.

Additionally, Riot Platforms (NASDAQ:RIOT) acquired an additional 1,432,063 shares of Bitfarms at $2.70 each, totaling approximately $3.87 million. With this purchase, Riot now holds about 14% of Bitfarms’ shares, part of its hostile takeover attempt of the company. Recently, Bitfarms implemented a “poison pill” to protect itself, responding to Riot’s aggressive approach, which criticized this defensive strategy.

Massive exploit on Holograph results in 7-million-dollar token loss

Holograph, an advanced platform for token transfers between different blockchains, was targeted by a cyber attack, leading to the loss of 1 billion HLG tokens, valued at around $7 million. Following the attack, the value of the HLG token plummeted 80% in one day, with partial subsequent recovery. An unidentified attacker compromised the platform’s Holograph Operator Contract, creating fraudulent tokens. Although the flaw has been fixed, the team is working with exchanges to block affected accounts and is cooperating with authorities. Additionally, some of the stolen tokens were converted and dispersed through addresses linked to services that promote anonymity, complicating the recovery of the funds.

Cryptocurrency scam via LinkedIn leads to $310,000 loss for investor

According to Cointelegraph, an investor was scammed out of $310,000 after interacting with a cryptocurrency trading platform called Ethfinance, discovered through a random LinkedIn invitation. The individual was lured to the platform with promises of substantial profits through cryptocurrency trading and transferred the amount from their DeFi wallet to Ethfinance. When attempting to withdraw their capital and accumulated profits, the investor was told they needed to add additional funds to complete a “smart contract” and make the withdrawal. The investor chose not to send more money and was consequently blocked from accessing their account, which was subsequently locked. The Washington State Department of Financial Institutions identified the incident as a potential “advance fee fraud,” a scheme where victims are persuaded to pay upfront fees for promises of financial returns that never materialize.

Tax charges against Binance executives dropped in Nigeria

Tax charges against Binance executives Tigran Gambaryan and Nadeem Anjarwalla in Nigeria have been dropped by the Federal Inland Revenue Service (FIRS). Now, Binance, represented locally, is the only defendant in the case. Gambaryan, currently ill and unable to attend court, and Anjarwalla still face a separate money laundering case. Nigerian authorities adjusted the charges after considering that the executives do not have significant decision-making power in the company.

Biden proposes significant changes in financial regulatory leadership

President Joe Biden has announced a series of nominations that could change the leadership of the major financial regulatory bodies in the US. Among the nominations, Christy Goldsmith Romero, current CFTC commissioner, is proposed to lead the FDIC, replacing Martin Gruenberg. Additionally, CFTC Commissioner Kristin Johnson is being considered for Deputy Secretary of the Treasury, and Caroline Crenshaw is expected to continue at the SEC. These changes come amid intense scrutiny of cryptocurrency policies during an election year.

Taiwan establishes advocacy body for cryptocurrency sector

Taiwan has officially launched the Association of Virtual Asset Service Providers, a coalition of 24 entities in the crypto sector, to facilitate collaboration between the private sector and the government in regulating the industry. The association, approved by the Ministry of the Interior in March 2024, will initially focus on creating a comprehensive self-regulation code, addressing aspects such as industry classification, consumer protection, and transaction monitoring.

Trezor launches new services to improve cryptocurrency wallet usability

Trezor is enhancing the usability of cryptocurrency wallets with the launch of Trezor Expert, a personalized onboarding service, and a new hardware wallet, the Trezor Safe 5. Trezor Expert offers individualized support to help users set up and manage their self-custodial wallets, promoting greater security and privacy. The Trezor Safe 5, in turn, brings advancements in security and ease of use, including a new backup system and a touch interface.

Growing interest in CBDCs, BIS survey indicates

A recent survey by the Bank for International Settlements (BIS) revealed that a record 94% of central banks are investigating the implementation of central bank digital currencies (CBDCs). This interest has increased compared to the 90% recorded in 2021. The survey highlighted that central banks consider it more likely to issue CBDCs for institutional use than for the general public in the next six years.

Beeple releases artwork inspired by memecoins featuring Iggy Azalea and Andrew Tate

Influential digital artist Beeple has unveiled his new work “Mother and Daddy (2024),” which reimagines Grant Wood’s classic “American Gothic,” incorporating controversial figures like Iggy Azalea and Andrew Tate. This piece reflects the intersection of celebrity culture and digital finance, with a critical focus on the globalization of American capitalism. The work is accompanied by a conceptual document that delves into the impact of memecoins and the cultural influence of Tate and Azalea.

Paradigm raises $850 million for new crypto and blockchain investment fund

Venture capital firm Paradigm has finalized raising an $850 million fund for early-stage investments in cryptocurrency and blockchain projects. This fund is one of the largest for the crypto sector to date and reflects the company’s continued confidence in the transformative potential of crypto and blockchain technology, as highlighted by co-founder Matt Huang. Paradigm has already invested in major names like Coinbase and Uniswap.